# Coin Burn

{% hint style="info" %}
See [Tokenomics](/ecosystem/tokenomics.md) for more information on supply
{% endhint %}

## How burning works

<details>

<summary>Diagram</summary>

<img src="/files/uxpj91MOwQgJ5hUS3tM8" alt="" data-size="original">

</details>

<table><thead><tr><th width="206">Address</th><th>Description</th></tr></thead><tbody><tr><td><code>0x1</code></td><td>Extend the life of the <em>$3ULL</em> node rewards<em>,</em> by reducing the number of tokens in circulation and not reducing the cap</td></tr><tr><td><code>0x0</code> and all others</td><td><mark style="color:red;"><strong>Permanent burn</strong></mark>,  reduce the cap from 50B</td></tr></tbody></table>

<table><thead><tr><th width="281">Mechanic</th><th>Description</th></tr></thead><tbody><tr><td>Gas Fees</td><td>Gas fees are sent to the <code>0x1</code> address</td></tr><tr><td>10% Ecosystem 3ULL</td><td>10% of ecosystem earnings such as Marketplace Fee's, First Party NFT Sales, etc are sent <code>0x0</code> reducing the total cap</td></tr></tbody></table>

{% hint style="info" %}
**Example**\
\
**Marketplace:**

&#x20;if a marketplace listing was sold for 100,000 3ULL, the flow of funds is as follows:&#x20;

* 6,750 3ULL transferred to the ecosystem treasury (not the same as the company treasury)&#x20;
* 750 3ULL is burnt
* 92,500 3ULL is transferred to the listing owner

\
**First Party NFT Sales:**\
Ifyou mint a brand new Nexus NFT for 10,000 3ULL, the flow of funds is as follows:&#x20;

* 1,000 3ULL is burnt 9,000 3ULL is transferred to the ecosystem treasury (not the same as the company treasury)
  {% endhint %}

### Treasury Manager

[Contract Address](/chain/contract-addresses.md)

The treasury manager recieves all income from marketplace fees, and first party NFT sales.

10% is burnt on the withdrawal of thse funds.

{% hint style="info" %}
Note: The 3ULL NFT, and VI3 are manual withdrawals to the Treasury, as these contract were deployed prior to the treasury manager. All future sales will go through the treasury manager.
{% endhint %}


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